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Tuesday AM February 15th, 2011

ConocoPhillips and Marathon Oil plan to shutter their shared liquid natural gas export plant in Alaska’s Cook Inlet. Andrew Schneider reports.


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Kenai LNG plantThe Kenai LNG plant has produced liquefied natural gas for export to Japan for the past forty years. That’s about to come to an end.

Natalie Lowman, spokeswoman for ConocoPhillips Alaska, explains:

“There is a lot of LNG in the market right now, and prices have fallen in the last six months to the extent that the business case for us didn’t really support continuing operation of the plant.”

Conoco and Marathon will run the plant as normal through March, when their present contracts with customers are due to expire.

“At that point, we’ll start to mothball the facility and put it into preserve mode in case there’s any other options that we could use the plant for in the future.”

The Kenai closure will not affect ConocoPhillips’ other natural gas operations at Cook Inlet. The company has two gas fields nearby at North Cook Inlet and Beluga River.

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Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media's coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments across Greater Houston. Before taking up his current post, Andrew spent five years as Houston Public Media's business reporter, covering the oil...

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